Chinese lithium-ion battery giant CATL to invest in EV battery project in Indonesia

Aerial photo taken on Sept. 11, 2019 shows a part of Contemporary Amperex Technology Co., Ltd. in Ningde, east China's Fujian Province. (Xinhua/Lin Shanchuan)

China's leading automotive lithium-ion battery maker Contemporary Amperex Technology Co., Ltd. (CATL, 300750.SZ) will invest no more than 5.968 billion U.S. dollars in the construction of an electric vehicle (EV) battery project in Indonesia to ensure the supply of upstream resources and raw materials, according to the company's filing with the Shenzhen Stock Exchange on Friday.

The project will be jointly invested and constructed by CATL's subsidiary Ningbo Contemporary Brunp Lygend Co., Ltd. (CBL), Indonesia's PT Aneka Tambang Tbk. (ANTAM) and PT Industri Baterai Indonesia (IBI), according to a framework agreement signed by the three parties on Thursday.

The EV battery project, located in the FHT Industrial Park of East Halmahera of Indonesia's North Maluku Province and other places in the country as well, includes nickel mining and processing, battery recycling, EV battery materials and EV battery manufacturing.

ANTAM is a subsidiary of Indonesia's state-owned mining company MIND ID, and IBI is a state-owned company engaged in EV battery and EV ecosystem of Indonesia.